Page 898 - Week 03 - Tuesday, 24 February 2009
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territory has strong cash reserves, of a predicted $441 million by the end of the financial year as outlined in the Treasurer’s midyear review. Preserving that net worth and existing and future cash holdings needs to be a priority.
The ACT Treasurer has indicated that one of the causes of the reduced surplus was the impact of investment returns, including superannuation. The ACT government could consider following the federal government’s lead in holding a significant portion of funds in cash as one way of ensuring that funds are preserved until such time as the economy recovers.
We note that since the downturn there has been a second appropriation bill, in December. And we are due to have a third appropriation bill tabled this week. Coupled with the federal government’s nation building and jobs plan, passed recently in the Senate, these represent a great opportunity for the ACT government to insulate the ACT economy from the impact of the recession and deliver much-needed capital works projects to benefit the territory. Time will tell if the measures in these bills have the desired effect of preserving jobs, improving household spending and stimulating private sector investment. Close monitoring of the economy is required.
We were pleased to see in today’s Canberra Times that the ACT Treasurer has raised with the federal finance minister the issue of cuts to the commonwealth public service. Preserving levels near or at existing commonwealth and ACT government staff levels will complement the aim of the appropriation bills and the federal government plan, with ready-to-go capital works projects to stimulate the private sector.
In the last session, we debated a matter of public importance on community service delivery and the current financial crisis. We stated how vital it was to maintain funding and support for those with limited resources who deliver services to an increasing number of people affected by job losses, rent increases, rising food prices and homelessness. There needs to be close attention paid to the needs of this group in the ACT budget context. We need to ensure that there is no reduction in funding at a time when the community service sector is stretched the most.
To do nothing in these challenging times is irresponsible. We support the need for prompt action to stimulate the economy. As I said at the outset, we are very concerned about the current economic crisis and its impact on the ACT economy. We call on the Treasurer in the ACT government to work with her Treasury officials, her commonwealth counterparts, the private sector and Assembly members to act to preserve existing assets through well-planned capital works programs and high levels of employment so as to enable the ACT to withstand the current economic downturn.
MR SMYTH (Brindabella) (4.32): I will start where the Treasurer finished. The Treasurer asserts that at that time nobody knew that things were going to get as bad as they got. Mr Hanson raised the issue that the Chief Minister, then Treasurer, said:
ACT Labor has given its word that election promises it makes will be fully funded and will allow the ACT to maintain surpluses in each of the years of the next term of government.
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